HHS awards $23.6M for hematology analyzer reagents and services, with Sysemex America Inc. as the sole awardee

Contract Overview

Contract Amount: $23,665 ($23.7K)

Contractor: Sysmex America, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $65/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: A REAGENT RENTAL CONTRACT FOR HEMATOLOGY ANALYZER WITH SERVICE AND SUPPLIES

Place of Performance

Location: RED LAKE, BELTRAMI County, MINNESOTA, 56671

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23,665.44 to SYSMEX AMERICA, INC for work described as: A REAGENT RENTAL CONTRACT FOR HEMATOLOGY ANALYZER WITH SERVICE AND SUPPLIES Key points: 1. The contract value of $23.6 million over one year represents a significant investment in essential laboratory diagnostics. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process for this requirement. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The award is a delivery order against a larger contract vehicle, indicating a phased approach to procurement. 5. The duration of the contract is approximately one year, allowing for regular re-evaluation of needs and market conditions. 6. The specific product service code (PSC) is not detailed, making direct comparisons to similar instrument manufacturing contracts challenging.

Value Assessment

Rating: good

The contract value of $23.6 million for a one-year reagent rental and service agreement for hematology analyzers appears reasonable given the critical nature of laboratory diagnostics. Without specific details on the number of analyzers or the volume of reagents, a direct per-unit cost benchmark is difficult. However, the fixed-price nature of the contract provides cost predictability. Comparing this to other government contracts for similar laboratory equipment and services would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and terms for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing for essential services.

Public Impact

Patients in Indian Health Service facilities will benefit from accurate and timely hematology analysis, crucial for diagnosis and treatment monitoring. The contract ensures the availability of essential laboratory services for healthcare providers within the Indian Health Service. Geographic impact is primarily focused on facilities served by the Indian Health Service, potentially across various regions. The contract supports the operational needs of clinical laboratories, indirectly impacting healthcare professionals and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements in the provided data.
Potential for price increases in subsequent years if not re-competed effectively.
Dependence on a single vendor for critical reagents and services could pose supply chain risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Fixed-price contract type offers budget certainty.
Long-term relationship with a known provider (Sysemex America, Inc.) may indicate reliability.

Sector Analysis

This contract falls within the broader 'Analytical Laboratory Instrument Manufacturing' sector, which is a critical component of the healthcare industry. This sector involves the production and servicing of sophisticated diagnostic equipment used in hospitals, clinics, and research facilities. The global market for in-vitro diagnostics, including hematology analyzers, is substantial and growing, driven by increasing healthcare needs and technological advancements. This specific contract represents a portion of the federal government's spending on essential medical equipment and consumables to support public health initiatives.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless Sysemex America, Inc. voluntarily engages small businesses in its supply chain or service delivery.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Health and Human Services, specifically the Indian Health Service contracting and program officials. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services and supplies. Transparency is facilitated through contract databases like FPDS, where award details are recorded. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Hematology Analyzers
Clinical Laboratory Services
Medical Equipment Maintenance
Diagnostic Reagents
Indian Health Service Procurement

Risk Flags

Potential for vendor lock-in
Supply chain vulnerability
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23,665.44 to SYSMEX AMERICA, INC. A REAGENT RENTAL CONTRACT FOR HEMATOLOGY ANALYZER WITH SERVICE AND SUPPLIES

Who is the contractor on this award?

The obligated recipient is SYSMEX AMERICA, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $23,665.44.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the historical spending pattern for hematology analyzer reagents and services by the Indian Health Service?

Analyzing historical spending patterns for hematology analyzer reagents and services by the Indian Health Service is crucial for understanding budget trends, identifying potential cost efficiencies, and assessing the consistency of procurement strategies. Without access to specific historical data for this particular contract or category within IHS, a precise analysis is not possible. However, generally, federal agencies like IHS aim for stable or optimized spending on essential medical supplies. Fluctuations might occur due to changes in patient volume, facility upgrades, or shifts in healthcare priorities. A review of past contract awards for similar services, including contract values, durations, and awarded vendors, would reveal whether spending has been consistent, increasing, or decreasing over time. This context helps in evaluating whether the current $23.6 million award represents a significant deviation or aligns with established spending levels.

How does the per-unit cost of reagents and service for this contract compare to other federal agencies or the commercial market?

A direct comparison of the per-unit cost for reagents and service under this contract to other federal agencies or the commercial market is challenging without specific unit volume data (e.g., number of tests performed, number of analyzers serviced, volume of reagents consumed). The provided data only gives a total contract value of $23.6 million for a 364-day period. To perform a meaningful benchmark, one would need to know the quantity of reagents purchased and the scope of services rendered. If, for example, this contract covers a large network of analyzers across multiple IHS facilities, the overall cost might be justified. However, if the volume is lower, the cost per unit could be higher than market rates. Benchmarking would involve obtaining similar contract data from other agencies (e.g., VA, DoD) or researching commercial price lists and volume discount structures for Sysemex America, Inc. or comparable hematology analyzer providers.

What is Sysemex America, Inc.'s track record with the federal government, particularly within the Department of Health and Human Services?

Sysemex America, Inc. has a significant track record with the federal government, particularly within the Department of Health and Human Services (HHS) and its various operating divisions, including the Indian Health Service (IHS). As a major manufacturer and supplier of hematology analyzers and related consumables, the company frequently secures contracts for these essential medical products and services. Examining federal procurement databases would reveal numerous past awards to Sysemex America, Inc. for similar requirements. A review of these past contracts would provide insights into their performance history, including on-time delivery, product quality, service responsiveness, and adherence to contract terms. Assessing their performance on previous HHS/IHS contracts is key to understanding their reliability and capability in fulfilling the current $23.6 million award.

What are the potential risks associated with relying on a single vendor for critical hematology reagents and services?

Relying on a single vendor, such as Sysemex America, Inc. in this case, for critical hematology reagents and services presents several potential risks. Firstly, there's a risk of supply chain disruption. If Sysemex faces manufacturing issues, logistical challenges, or unforeseen events, the availability of essential reagents could be compromised, directly impacting patient care. Secondly, a lack of competition can lead to price escalation over time, as the government may have limited leverage to negotiate favorable terms in future procurements if locked into a specific vendor's ecosystem. Thirdly, there's a risk of vendor lock-in, where the specialized nature of the analyzers and reagents makes switching to a different vendor difficult and costly. Finally, service quality could potentially decline if the vendor faces no competitive pressure to maintain high standards. Mitigation strategies often involve robust contract management, clear performance metrics, and contingency planning.

How does the 'Analytical Laboratory Instrument Manufacturing' sector typically compete for federal contracts?

The 'Analytical Laboratory Instrument Manufacturing' sector typically competes for federal contracts through various mechanisms, primarily full and open competition, but also sometimes through GSA schedules, other agency-specific IDIQs (Indefinite Delivery/Indefinite Quantity) contracts, or sole-source awards under specific circumstances. For large procurements like reagent rental and service agreements, agencies often issue solicitations requiring detailed technical proposals, past performance evaluations, and price proposals. Competition can be intense, especially for widely used diagnostic platforms. Factors influencing competition include the specificity of the required technology, the installed base of instruments, the availability of alternative solutions, and the agency's procurement strategy. Companies like Sysemex America, Inc. leverage their established product lines, service networks, and understanding of government procurement processes to bid effectively. The use of full and open competition, as seen in this award, suggests the agency sought to maximize market participation.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sysmex Corporation

Address: 577 APTAKISIC RD, LINCOLNSHIRE, IL, 60069

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $118,327

Exercised Options: $23,665

Current Obligation: $23,665

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D40235

IDV Type: FSS

Timeline